The Maritime Relations between Italy and the Mediterranean Area

The Maritime Relations between Italy and the Mediterranean Area Focus Morocco Alessandro Panaro SRM -Head of Maritime and Mediterranean Economy Dept. 0 Genova, 18 settembre 2015

SRM: Maritime and Mediterranean Economy SRM Mediterranean Observatory 2011 SRM Maritime Observatory 2014

Agenda The analysis of the competitiveness of the Mediterranean port system. The most important phenomena in the container market of themedarea The maritime trade relationship between Italy and Morocco Final remarks about the future 2

Competitività. LSCI - Liner Shipping Connectivity Index 2015 Germany 6 (+ 2 ) 97,79 Netherlands 8 (- 1 ) 96,33 Morocco 16 ( - ) 68,28 Italy 17 ( - 3) 67,43 Turkey 24 (- 2 ) 51,97 Greece 27 ( - ) 46,81 China 2004 = 100 Fonte: SRM su UNCTAD, 2015 TheworldrankingseesItalyin17 th placeandmoroccoin16 th place(fromatotal of 157 world countries) Moroccogained3placesintherankingsince2013 Morocco is one of the the best-connected Countries in the Med Area (if we consider MENA countries) 3

The LSCI - Liner Shipping Connectivity Index 2004-2015 120 Germany Netherlands Morocco Italy Turkey Greece 100 Italy 80 60 40 20 Morocco 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Moroccoshowsthebestgrowthsince2007 Source: SRM on UNCTAD, 2015 4

Fonte: SRM su dati Autorità Portuali, 2014 5 5

Container market: the Port Systems The South Med ports TheEastMedports +2p.p. +4p.p. 6

Container market: the Hub System Market shares held by the hubs. 2009-2014 comparison (based on TEUs handled) Malta 11% Cagliari 3% Pireo 14% 11% 4% 3% 6% Tanger Med 11% 14% Gioia Tauro 11% 2014 18% 2009 17% Port Said* 14% Valencia 16% 6% 4% Damietta* Taranto 3% 1% 15% Algeciras 17% 7

Agenda The analysis of the competitiveness of the Mediterranean port system. The most important phenomena in the container market of themedarea The maritime trade relationship between Italy and Morocco Final remarks about the future 8

The new drivers of maritime economy: 1. THE ALLIANCES 9

Market Shares - 4 Mega Carriers Alliances 10

The ports involved in the Alliances routes: Italy and Morocco Gioia Tauro 2M Genoa La Spezia Trieste Leghorn O3 Naples (America- Med Routes) TANGER MED Genoa La Spezia Trieste Venice G6 Cagliari Genoa TANGER MED CKYHE Genoa La Spezia Trieste 11

The new drivers of maritime economy: 2. Naval gigantism New Panama Canal s limit New Suez Canal 12

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Intermodality: Megaships impact 14

Intermodality: Megaships routes 15

Complexity and problems What do the carriers want? SELECTION CRITERIA FOR REFERENCE PORTS - Cost structure - Berth availability - Productivity -Draft -Catch area - Rail/feeder connections - Investments 16

Terminal alliances The terminal and its productivity ensures port efficient logistics and intermodal In addition to alliances among carriers it is also running a policy of alliances between the major operators of port terminals 17

The Traffic in the Suez Canal: Ships and Cargo Transiting goods account for 8% of the entire globe. In 2014, 822 million tonnes of goods passed through the Canal. Over the same period, north-south container trade volumes (which account for 50% of all the volume s trade) grew by 187% while the south-north ones grew by 219% Oil products also grew significantly; from 50 million tonnes in 2000 to 178 million tonnes in 2014 (+251%) Between 2000 and 2014 the Canal s traffic trends recorded a 120% increase in the transit of goods 18

New Suez Canal The New Suez Canal aims to double the thoroughfare of the existing canal, which is one of the world's most important maritime transit links. The Egyptian plan intends to transform the entire zone of 76,000 square kilometers, with industrial, logistical, and technological centre, as well as new infrastructures. The logistics and industrial centre in the Suez Canal Corridor will serve as a bridge from Europe to Asia. The main data of the New Suez Canal: The total area covered by building work is 72 km long. The new Canal reduces transit times to less than 11 hours (from 18 hours). With the expansion, the canal authority projects that it will be able to double the number of ships transiting daily to 97 by 2023, boosting toll incomes to $13.5 billion per annum. Potential impact on the italian ports: 51% of the container handled in Genoa and 49% in La Spezia passes via Suez. 19

Flow of goodsin the directionfrom North to South of Suez Canal 2001-2014 Source: SRM su Suez Canal Authority, 2015 20

Flow of goodsin the direction from South to North of Suez Canal 2001-2014 Source: SRM su Suez Canal Authority, 2015 21

Agenda The analysis of the competitiveness of the Mediterranean port system. The most important phenomena in the container market of themedarea The maritime trade relationship between Italy and Morocco Final remarks about the future 22

Economic opportunity: the maritime relationship with Med Area Italian Imports-exports by mode of transport Some Italian main partner Source: SRM elaborations on ISTAT Coeweb data, 2015 Italy: In 2014, among the various modes of transport available, maritime was the most important. Making up 76% of the total, worth over 36 billion euros of 48 billion euros total. Morocco accounts for approximately 5% as partner of commercial trade with Italy. Approximately 1.7 billion euros is generated by trade with Morocco. 23

The maritime relationship between Italy and the Med Area/1 Source: SRM elaborations on ISTAT Coeweb data, 2015 24

The maritime relationship between Italy and the Med Area/2 Source: SRM elaborations on ISTAT Coeweb data, 2015 25

The roleof Tanger Med Container Traffic (TEUs handled) 26

The growth of MED Container Ports(2008-2014) 27

Free Zones as support for internationalization Tanger Med 28

Tanger Med port 29

Agenda The analysis of the competitiveness of the Mediterranean port system. The most important phenomena in the container market of themedarea The maritime trade relationship between Italy and Morocco Final remarks about the future 30

The future DYNAMAR perspectives on themed Area: 2015 Regional and feeder intra-med traffic +4.7% 2017 Regional and feeder intra-med traffic +14.7% OSC Perspectives on the Med Area: 2020 Container traffic +5.4% (per year) Drewry perspectives on main routes: 2015 Container traffic +5.5% 31

Thanksfor yourattention www.srm-maritimeconomy.com www.srm-med.com 32